With the participation of more than 70 participants representing various relevant bodies, the first day agenda of the “Bankruptcy Applications based on the KSA & and the US Bankruptcy Laws Workshop" was concluded. This workshop was held for two days by the Bankruptcy Commission in cooperation with the US Department of Commerce.
This workshop aims to enhance the best practical practices of applying the Bankruptcy law, strengthening the law's infrastructure by reviewing some case studies of restructuring and liquidation implemented by various global companies.
The Bankruptcy Law
The Bankruptcy law is concerned with the indicator of resolving insolvencies, which is one of the (10) main indicators designed to measure the ease of doing business in every country. The law also aims to protect and allow the investment enterprises to continue their business activities.
Addressing Company's' Subjection to the Bankruptcy Regulations
The companies' subjection to the Bankruptcy regulations shall not be considered a negative aspect but rather a sign that indicates the maturity of the country's economic business. The workshop highlighted several examples of the largest US companies that filed for bankruptcy procedures, either restructuring or liquidation, at the courts. Such a practice, did not prevent these companies from continuing their business activity, or resulted in loosing the confidence of those who had used the bankruptcy law before. This indicates that employing this law is a healthy phenomenon in any economic community.